The granite boulders in Rocky Mountain National Park are a favored place among talented climbers who specialize in the art of bouldering, or climbing harder (but shorter) routes without tying into a rope. Climbers have taken to (illegally) stashing foam crash pads underneath the boulders but marmots and other rodents chew up the pads and the litter is spread by the wind. To limit overuse of this park, suppose a limited number of permits are sold each year to climbers who can sell them at any time to other climbers. This method of achieving efficient use of a common resource is most like what government policy?

Question

Quizplus · Accepted Answer

The policy of selling permits that can be transferred to other climbers is most similar to the policy of individual transferable quotas (ITQs), which are a type of market-based solution to managing common-pool resources. ITQs establish a limit on the total quantity of fish or other resources that can be harvested, but allow individual fishers or users to buy or sell allocations of this total quantity. This creates a market for the resource that can lead to more efficient and sustainable use. Similarly, by limiting the number of climbers through a permit system that allows for transfers, Rocky Mountain National Park is attempting to manage use of its natural resource in a way that balances conservation with user demand and efficient allocation.

The Granite Boulders in Rocky Mountain National Park Are a Favored